The B-Ready Programme

Business Ready (B-READY) is an international benchmarking project developed by the World Bank Group. B-READY provides a quantitative assessment of the business environment for private sector development, published annually and covering most economies worldwide. B-READY data and summary report aim to advocate for policy reform, inform specific policy advice, and provide data for development policy research. Through its focus on private sector development, B-READY contributes to meeting the World Bank Group’s twin goals of eliminating poverty and boosting shared prosperity.

B-READY assesses an economy’s business environment by focusing on the regulatory framework and the provision of related public services directed at firms and markets, as well as the efficiency with which regulatory framework and public services are combined in practice. B-READY seeks a balanced approach when assessing the business environment: between ease of conducting a business and broader private sector benefits, between regulatory framework and public services, between de jure laws and regulations and de facto practical implementation, and between data representativeness and data comparability. B-READY covers the areas where it can provide the most value added in the context of existing indicators: namely, the regulatory framework and related public services at the microeconomic level.

B-READY focuses on ten topics that are organized following the life cycle of the firm and its participation in the market while opening, operating (or expanding), and closing (or reorganizing) a business. The main topics include Business Entry, Business Location, Utility Services, Labor, Financial Services, International Trade, Taxation, Dispute Resolution, Market Competition, and Business Insolvency. Within each topic, considerations relevant to the business environment regarding aspects of the adoption of digital technology, environmental sustainability, and gender are captured. Based on the data collected, B-READY generates scores for each topic area and potentially a set of aggregate scores. B-READY collects both de jure information and de facto measures. While de jure data are collected from expert consultations, de facto data are collected from both expert consultations and firm surveys. The latter is a major innovation and represents a significant increase in the data available to WBG teams, development practitioners, and researchers around the world.

B-READY assesses the economy’s business environment by focusing on the regulatory framework and the provision of related public services for firms and markets, as well as the efficiency with which they are combined in practice

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Output

The Business Ready benchmarking exercise provides a quantitative assessment of the business environment for private sector development.

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Development Purpose

a) to advocate for policy reform;
b) to inform specific policy advice; and
c) to provide data for development policy research

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Approach

-READY´s approach aims to strike a good balance on the most salient dimensions of a business environment assessment

B-READY’s Pillars

Regulatory Framework

rules and regulations that firms must follow as they open, operate, and close a business.

Public Services

the facilities that governments provide directly or through private firms to support compliance with regulations and the critical institutions and infrastructure that enable business activities.

Efficiency

pertains to the efficacy with which the regulatory framework and related public services are combined in practice to obtain the objectives that allow firms to function.

B-Ready Topics

Business Entry

The Business Entry topic measures the process of registration and start of operations of new limited liability companies (LLCs) across three different dimensions, here referred to as pillars. The first pillar assesses the quality of regulations for business entry, covering de jure features of a regulatory framework that are necessary for the adoption of good practices for business start—ups. The second pillar measures the availability of digital public services and transparency of information for business entry. The third pillar measures the time and cost required to register new domestic and foreign firms. Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories.

Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Business Location

The Business Location topic measures three different options purchasing, leasing, and building that are available to entrepreneurs to choose the adequate location to set up their company, across three different dimensions, here referred to as pillars. The first pillar assesses the quality of regulations pertaining to property transfer, building, and environmental permitting, covering de jure features of a regulatory framework that are necessary for immovable property lease, property ownership, urban planning, and environmental licenses. The second pillar assesses the quality of public services and transparency of information in the provision of property transfer, building, and environmental permitting. The third pillar measures the operational efficiency of establishing a business location in practice. The interaction between these three pillars ensures a comprehensive evaluation of business location, balancing regulatory quality, service transparency, and operational efficiency to create an optimal environment for business establishment. The three pillars consider both the firm's flexibility and the broader social benefits. They ensure a more balanced approach accounting for private sector needs while safeguarding public interests, such as environmental sustainability and public safety.

Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Utility Services

The Utility Services topic measures the effectiveness of regulatory frameworks, and the quality of governance and transparency of service delivery mechanisms, as well as the operational efficiency of providing electricity, water, and internet services. Under the first pillar the Utility Services topic assesses the effectiveness of regulation pertaining to electricity, water, and internet services, covering de jure features of a regulatory framework that are necessary for the efficient deployment of connections, reliable service, safety, and environmental sustainability of provision and use of utility services. The second pillar of the topic measures the quality of governance and transparency in the provision of utility services, thus assessing the de facto provision of utility services. The third pillar measures the time required to obtain electricity, water, and internet connections, as well as the reliability of utility service supply. Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Labor

The Labor topic measures good practices in employment regulations and public services from the perspective of both enterprises and employees across three different dimensions, here referred to as pillars. The first pillar assesses the quality of labor regulations pertaining to workers' conditions and employment restrictions and costs, covering de jure features of the regulatory framework that are necessary for the functioning of the labor market and to provide employers and employees with their obligations and relevant safeguards. The second pillar measures the adequacy of public services for labor, assessing the de facto provision of social protection and the institutional framework on which the labor market and the enforcement of labor regulations depend. The third pillar measures the operational efficiency of labor regulations and public services in practice, assessing employment restrictions and cost, as well as public services. Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Financial Services

The Financial Services topic measures four areas— Commercial Lending; Secured Transactions; e—Payments; and Credit Information—across three different dimensions, here referred to as pillars. The first pillar assesses the effectiveness of regulation pertaining to commercial lending, secured transactions, and e— payments, covering the de jure features of regulatory frameworks. The second pillar measures the accessibility of information in credit infrastructure by evaluating the operation of credit bureaus and registries and the operation of collateral registries. Thus, the second pillar assesses de facto and some de jure aspects of financial services. The third pillar measures the operational efficiency of (i) obtaining a loan; (ii) registering a security interest as well as the timeliness of credit information sharing; and (iii) e—payments usage and their efficiency. Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories.

Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

International Trade

The International Trade topic measures different aspects of international trade—trade in goods, trade in services, and digital trade—across three different dimensions, here referred to as pillars. The first pillar assesses the quality of regulations pertaining to international trade, covering de jure features of a regulatory framework that are necessary to establish a nondiscriminatory, transparent, predictable, and safe environment to harness the potential of international trade. The second pillar assesses digital and physical infrastructure concerning international trade and the quality of border management, thus assessing de facto provision of public services for international trade facilitation. The third pillar measures the time and cost to comply with export and import requirements, participation in cross—border digital trade, as well as the perceived major obstacles for international trade.

Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Taxation

The Taxation topic measures the quality of regulation, administration, and practical implementation of tax systems across the three different dimensions, referred to as pillars. The first pillar assesses the quality of regulation related to taxation, encompassing both the legal framework (de jure) and the implementation (de facto) of the legal requirements. The second pillar measures the quality of tax administration by assessing the public services related to tax matters. The third pillar evaluates the practical effectiveness of the implemented tax regulations and public services

Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

Dispute Resolution

The Dispute Resolution topic measures efficiency and quality of the resolution of commercial disputes—those arising in the business context between firms—across three different dimensions, referred to as pillars. The first pillar assesses the adequacy of legislation pertaining to both court processes and alternative dispute resolution (ADR), covering de jure features that are necessary for the efficient processing of cases, facilitated resolution of cross —border claims, creating alternative venues for settling disputes, and ensuring trust in relevant institutions. The second pillar focuses on judicial organizational structure, courts’ digitization and transparency, as well as ADR— related services, thus capturing the de facto provision of public services. The third pillar measures the reliability of dispute resolution, the time and cost required to resolve a dispute, as well as the time and cost associated with the recognition and enforcement of decisions.

Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.